ECB governing council member and Bank of Spain governor Pablo Hernandez de Cos said on Tuesday that recent developments anticipate a significant downward revision to the 2021 economic growth outlook, plus a more moderate slowdown in 2022. The recent inflation spike, supply bottlenecks and rise in Covid-19 infections in Europe, he added, could lead to a slight downwards revision to Spanish GDP growth forecasts for Q4 and early 2022. 

Market Reaction

The euro has not seen a significant reaction to the latest comments from de Cos.